Navig8 newbuilding spree continues

Mar 31 2014


Navig8 Chemical Tankers has signed newbuilding contracts for the construction of two 25,000 dwt IMO II type eco-design stainless steel chemical tankers with Fukuoka Shipbuilding.

The newbuildings are set for delivery in 2017, the company said in a statement.

"We are experiencing robust growth for chemical tanker demand, in particular for long haul cargoes. We anticipate an acceleration of demand growth from 2015 onwards, initially from the Middle East producers, which are expected to add 5 mill tonnes of new ethylene capacity between 2014 and 2016.

“Thereafter, the biggest change will come from the US from 2016 onwards, on the back of the US shale gas revolution, which is set to reshape the landscape for liquid chemical production and transportation.

"This order fits very well with our newbuilding strategy. Larger Eco long haul chemical tonnage from a first class yard,” the company explained.

Navig8 Chemical Tankers, the venture sponsored by Navig8 Group and Oaktree Capital Management, has eight 25,000-dwt stainless-steel chemical tankers at Japan's Kitanihon Shipbuilding and Fukuoka Shipbuilding for delivery in 2016 and 2017, and 18 units of 37,000 dwt on order at South Korea's Hyundai Mipo Dockyard (HMD) for delivery next year.

This order comes hard on the heels of another six VLCCs split between HHI, SWS and Hanjin Subic, who have received two contracts each.

Broking sources said the prices varied between $97 mill to $101 mill per vessel. By comparison, GenMar was thought to be paying about $104.5 mill each for the seven VLCC newbuilding contracts purchased from Scorpio.

The company also has four, plus eight optional, LRs on order at SPP thought ordered at around $48 mill each, which were announced earlier in March.

Broking sources also said that CM Lemos had entered the market to contract two, option two, Suezmaxes at HHI for 2016 deliveries.

Tsakos Energy Navigation (TEN) has confirmed that the company has ordered four Aframaxes at DSME on the back of Statoil charters. They are to be delivered in 2017.

VLGCs were still proving popular with Aurora LPG thought to be behind two 76,000 cu m capacity vessel order at IHI for $76 mill each, while Kumiai Senpaku was believed to have ordered a VLGC at HHI.

In the S&P sector, MOL was reported to have committed the 2000-built VLCC ‘Asian Progress II’ to Greek interests for $28 mill and BW Maritime was said to have sold the 2000-built VLCC ‘BW Nysa’ to unknown buyers for $30 mill, probably on the back of a conversion project.

In the Suezmax segment, the 2012 and 2013-built ‘Seagrace’ and Seasprite’ were believed taken by Teekay for $54 mill each, while the 1999-built sisters ‘Genmar Hope’ and ‘Genmar Horn’ were reported committed to Greek interests for $30 mill en bloc and the 2001-built ‘Huelva Spirit’ was sold to Moundreas for $22 mill, according to brokers’ reports.

As for Aframaxes, the 2003-built ‘Pacific Leo’ was said to have been sold to Norwegian interests for $21.5 mill. Pantheon Tankers was thought to be behind the purchase of the 2007-built ‘Mare Italicum’ for $34 mill. Teekay was said to have taken the coated 2012-built sisters ‘Guadalupe’ and ‘Neches’ for $47 mill each.

The 2001-built Handysize ‘Cielo di Parigi’ was thought sold to Greek interests for $13.6 mill. She was believed recently chartered for 12 months, option a further 12 months, at $12,500 per day. 

Leaving the fleet were several Aframaxes reported sold for recycling. These included the 1991-built ‘Badraini’ reportedly sold to Indian breakers for $440 per ldt; the 1994-built ‘Overseas Beryl’ which was reported as also sold to Indian interests on the basis ‘as is’ Singapore for $453 per ldt, a level which included bunkers ROB for her final voyage; the 1991-built ‘Fair Spirit’ thought sold to Pakistani breakers for an unknown price and the 1989-built ‘Ocean Apex’ sold to Bangladesh breakers for $473 per ldt.

In the smaller size ranges, the 1996-built MR ‘Itaituba’ was reported sold on the basis of ‘as is’ Brazil for $350 per ldt with 100 tonnes of bunkers ROB, while the 1982-built Handysize ‘Felici’ was thought sold to Bangladesh on private terms.

In the charter market, the 2002-built Suezmax ‘SCF Caucasus’ was reported as chartered for six months to Solal for $20,000 per day and the 2008-built Aframax ‘Clio’ was said to have been fixed to ST Shipping at $13,250 per day. 



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